We all know IULs are a ripoff

[inkster4526]

Folks,
I was a successful life and annuity wholesaler for 30 years. Let's talk about basics.
A VUL which was pushed in the 90's and beyond was popular because of the underlying fund returns like Wellington in Hartford Life. Fees were overlooked. The ONLY use of a VUL was funding a Sec162. Exec. Bonus Plan that was vastly overfunded the first 5 years. Goal was to withdraw income at age 65+ income tax free. Have no idea how these have worked out with the 2008-2009 market drop. Guarantees were a non issue.
Tax laws have now changed, as they usually do.
I was one of the first wholesalers in the US of EIA's. Very successful. Conducted 4 hour CE courses on the DETAILS of EIA's so agents could ethically explain a product to the public. Generated $100 million plus in annuity sales over several years.
IUL's? Have no idea of training. IUL's evolved as the market tanked to replace VUL's with the "no market losses" mantra BUT again no attention to fees or historical index returns.
I have sold retail $25million policies to high net worth clients. ALL were UL's to age 95.
All illustration's were realistic with 30 year %rate credit histories.
WL's. Great guarantees, but expensive. IUL's have sizzle but no long term steak.
Short term coverage needs = term life. Longer term needs requires permanent coverage=UL. Today if you don't add a LTC rider from a top company for the client you are doing a great injustice. I know. MY clients are all 55+.
PLEASE stop all of this flim flam with min. funding and over the top illustrations. An authentic life insurance pro is a purist. Face value is $x and premium is $x. If a client can't afford it, move on to a plan they can afford. Just don't BS a client to make a sale.

 

[rousemark]

Folks,
I was a successful life and annuity wholesaler for 30 years. Let's talk about basics.
A VUL which was pushed in the 90's and beyond was popular because of the underlying fund returns like Wellington in Hartford Life. Fees were overlooked. The ONLY use of a VUL was funding a Sec162. Exec. Bonus Plan that was vastly overfunded the first 5 years. Goal was to withdraw income at age 65+ income tax free. Have no idea how these have worked out with the 2008-2009 market drop. Guarantees were a non issue.
Tax laws have now changed, as they usually do.
I was one of the first wholesalers in the US of EIA's. Very successful. Conducted 4 hour CE courses on the DETAILS of EIA's so agents could ethically explain a product to the public. Generated $100 million plus in annuity sales over several years.
IUL's? Have no idea of training. IUL's evolved as the market tanked to replace VUL's with the "no market losses" mantra BUT again no attention to fees or historical index returns.
I have sold retail $25million policies to high net worth clients. ALL were UL's to age 95.
All illustration's were realistic with 30 year %rate credit histories.
WL's. Great guarantees, but expensive. IUL's have sizzle but no long term steak.
Short term coverage needs = term life. Longer term needs requires permanent coverage=UL. Today if you don't add a LTC rider from a top company for the client you are doing a great injustice. I know. MY clients are all 55+.
PLEASE stop all of this flim flam with min. funding and over the top illustrations. An authentic life insurance pro is a purist. Face value is $x and premium is $x. If a client can't afford it, move on to a plan they can afford. Just don't BS a client to make a sale.

A word on LTC, Critical or Chronic Care riders.. They sound great but it is never discussed that they could result in a financial disaster for the family. Supposedly a WL or IUL is being written for a PERMANENT need. If that need still exists and the policy is accelerated under one of the rider provisions, then at death the need for the insurance is not covered.. Life insurance should be written for life insurance needs... LTC for LTC needs..

 

[Tahoe Ray]

PLEASE stop all of this flim flam with min. funding and over the top illustrations. An authentic life insurance pro is a purist. Face value is $x and premium is $x. If a client can't afford it, move on to a plan they can afford. Just don't BS a client to make a sale.

You should post this on facebook or another forum where most of the responders don't have the same amount of years in the business/production as you do.

No one I know (who I consider a professional) does this.

 

[DHK]

By calling me a troll, you have lost whatever little respect I had for you. If you can't extend professional courtesy to another knowledgeable agent, what do you care about your clients?

If anyone is trying to please everybody, you become nothing to nobody.

It is not my job to earn your respect. It's my job to espouse the truth and your opinion of it is of no consequence to me.

By the way, the way we treat other agents is NOT a representation of how we treat our clients.

 

[Allen Trent]

I was one of the first wholesalers in the US of EIA's. Very successful. Conducted 4 hour CE courses on the DETAILS of EIA's so agents could ethically explain a product to the public. Generated $100 million plus in annuity sales over several years.

successful for who? some of those early EIAs resulted in numerous class action lawsuits, proceedings by several attorneys general & single handedly resulted in much of the regulations causing a basic MYGA to now be 10 pages long due to suitability concerns of many of those early 2 tiered FIA( formerly called EIAs)

 

[marindependent]

By the way, the way we treat other agents is NOT a representation of how we treat our clients.

What Exactly does that mean?

 

[DHK]

What Exactly does that mean?

I'm far more blunt with other agents than I am with the general public. Often nicer too.

 

[WinoBlues]

That Guarantee is a contractual secondary guarantee which must be exercised at age 65 and it's based on cash value at that time.

Would you explain this sentence, please?

Thank you.

 

[Allen Trent]

Would you explain this sentence, please?

Thank you.

Save yourself & run while you can, your self esteem will be injured before you know it.

No need for them to explain that comment as it is not true. If premium paid meets no lapse required premium, the policy will not lapse regardless of Positive or negative cash value.

 

[phoenixlord]

Would you explain this sentence, please?

Thank you.

Guarantee Builder IUL3 is a universal life product with indexed features, issued on form series ICC11LS175, that provides a death benefit upon the death of the insured person and also offers the potential to earn tax-deferred interest based on the performance
of one or more stock market Indices. It has a no lapse guarantee period of 15 years subject to the payment of a minimum premium. Refer to the “Minimum Premium” section of this illustration for details.
In this policy, you can allocate premiums to an account that offers a fixed interest rate (the “Fixed Account”), and/or an account that offers an interest rate based on the performance of a combination of the following indices and one of the Index Crediting
Methods (Index Selection):

Protected Death Benefit: The Protected Death Benefit provision is automatically included in your policy at issue. There is no additional premium to have this
benefit as part of your policy, but there are charges associated with the benefit once it is elected.
If you elect the Protected Death Benefit, it guarantees that the policy will remain in effect and that the death benefit, less any policy debt at the insured’s death, will at least be equal to the Protected Death Benefit Amount you specify at the time that you exercise
this benefit. The minimum benefit amount is $25,000. The Protected Death Benefit does not guarantee that other riders that are attached to the policy will remain in effect.
The earliest that you may elect this benefit is when the policy has been in force for at least 15 policy years and the insured’s policy age is at least age 65. You may elect the benefit by sending us written notice on or after the date these conditions are met. The
portion of the policy’s Account Value that is required to maintain this benefit must be allocated to the Fixed Account. The Protected Death Benefit cannot be elected if the Overloan Protection Benefit is in effect. Other requirements may also apply.
Refer to the policy form for benefit availability conditions and other details.

Premium Guarantee Rider: When this rider is in effect, it provides an important no lapse protection guarantee that can ensure that your coverage will continue
even if the policy’s surrender value is not sufficient to cover the monthly deductions as defined in the policy.
The guarantee uses an alternate account value that is calculated in a similar manner as the policy account value, but uses different charges and interest rates. This alternate account value is simply a reference value that is used to determine whether the
guarantee is in effect. It is not used in determining the policy account value, and you cannot access its value for purposes of loans or withdrawals.
The performance of the alternate account value fund is sensitive to the prompt payment of premiums. Payments should be made on time and in a consistent manner to protect this guarantee.
Note that changes in your premium payment pattern or other policy changes such as loans, withdrawals and death benefit changes may affect the length of time that this guarantee can continue your policy in force. However, the Premium Guarantee Rider will not lapse solely due to loan or withdrawal activity, death benefit increases or decreases, death benefit option changes or a change in your underwriting class.
Once the Premium Guarantee Rider terminates, it cannot be reinstated. Refer to the Premium Guarantee Rider form for additional details regarding this benefit.